Thursday, September 28, 2006

A recent study by Denison Consulting has found that, when it comes to delivering positive, bottom-line results, an organisation's culture can make a huge difference.

A workplace that values adaptability, consistency, a clear direction and employee involvement is more likely to deliver better returns, sales growth, productivity and shareholder value, according to new research from the U.S.

Their findings?

Businesses with the best organizational culture earned an average return-on-assets of 6.3% versus. 4.5% for firms with the lowest organizational scores.

The top-quartile firms achieved average, one-year sales growth of 15.1%, as compared with 0.1% for the lowest-quartile group.

During a three-year period, the firms with the best scores around organizational culture significantly outperformed their industry peers, as well as the companies with the lowest organizational culture scores

BOTTOMLINE: These results represent a dramatic affirmation of the importance of organizational culture, and its link to real-world business results.